You hold a stock worth S0. Does a perfect hedge using futures involve locking...
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You hold a stock worth S Does a perfect hedge using futures involve locking in the current spot price, so that the value of your portfolio in the future will equal its current value? Consider both the case in which the the futures positon is closed prior to maturity and that where the future is held to maturity.
You hold a stock worth S Does a perfect hedge using futures involve
locking in the current spot price, so that the value of your portfolio in
the future will equal its current value? Consider both the case in which
the the futures positon is closed prior to maturity and that where the
future is held to maturity.
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